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This file is used by .xinitrc to determine which window manager to start (Fluxbox or JWM), and whether or not to display the XtDesk/XFM desktop icons.

The default file looks like this:

       wm: fluxbox
       icons: 1

The "wm:" line specifies which window manager to run, and the "icons:" line enables the use of icons (use 0 to disable icons).
This file is modified by the DSL_Icon_Tool and by switching desktops from the desktop menu.